Low Income Taxpayer Clinic Grant

The Low Income Taxpayer Clinic (LITC) Grant Program is administered by the Internal Revenue Service through the Taxpayer Advocate Service. The program was established to ensure that low-income taxpayers and individuals with limited English proficiency have access to representation, education, and advocacy in matters involving federal tax disputes. The program operates under statutory authority provided by Internal Revenue Code Section 7526 and is funded through congressional appropriations. The IRS awards grants to qualifying organizations to develop, expand, or continue LITCs that serve vulnerable populations who otherwise may lack access to tax-related legal support. The primary purpose of the LITC grant is to fund organizations that provide pro bono or nominal-fee representation to low-income taxpayers in controversies with the IRS, as well as to deliver educational outreach to taxpayers for whom English is a second language. Clinics are expected to advocate for taxpayer rights, assist in resolving disputes, and educate communities about tax responsibilities. In addition to direct services, clinics may engage in systemic advocacy to identify broader issues affecting low-income taxpayers and communicate these to the Taxpayer Advocate Service. Funding under this program supports a range of allowable activities including staffing, outreach, education programs, and operational expenses necessary to deliver services. However, funds must be used strictly for LITC-related activities and cannot support unrelated organizational functions. Subawards are generally prohibited unless specifically approved. Clinics may not charge more than a nominal fee for services, reinforcing the program’s commitment to accessibility. Importantly, all federal funds must be matched dollar-for-dollar with non-federal contributions, including cash or in-kind support such as volunteer time or donated resources. Eligible applicants include accredited academic institutions operating clinical programs, nonprofit organizations, and other entities that provide representation and/or education services to qualifying taxpayers. Organizations must demonstrate the ability to deliver both controversy representation and educational outreach, unless applying under a specific ESL-only education track. Applicants must also be in compliance with federal tax and non-tax obligations and cannot be debarred or suspended from federal funding. The application process requires submission through the LITC Grants Portal and includes multiple components such as Standard Form 424, Form 13424-J (budget), and Form 13424-M (narrative). Supporting documentation may include financial statements, tax-exempt status verification, and indirect cost agreements. Applicants must register with the System for Award Management (SAM) and obtain a Unique Entity Identifier. The application period for the 2027 grant cycle opens on May 6, 2026, and closes on July 6, 2026. Applications are evaluated through a technical review process based on criteria such as organizational background, service delivery plan, geographic coverage, and outreach strategies. Awards are competitive and subject to appropriated funding. The IRS prioritizes expanding services in underserved geographic areas and increasing access to taxpayer education. Award decisions are expected by November 2026, and selected recipients must participate in a required annual conference. Grant awards may be up to $200,000 per year, with funding periods typically covering a calendar year from January 1 through December 31. While grants may be awarded for up to three years, funding is distributed annually and contingent upon performance and congressional appropriations. Recipients are required to submit interim and final reports and comply with federal grant management standards. The program is recurring annually and continues to expand its national footprint to better serve low-income and ESL taxpayers.

Focus on underserved geographic areas; demonstrate strong outreach to ESL populations; ensure compliance with matching fund requirements and federal standards